Red Cat (NASDAQ:RCAT) Stock Price Down 3.6% – Here’s Why

Shares of Red Cat Holdings, Inc. (NASDAQ:RCAT) were down 3.6% during trading on Thursday . The stock traded as low as $8.39 and last traded at $8.43. Approximately 5,155,982 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 10,620,210 shares. The stock had previously closed at $8.75.

Red Cat Price Performance

The company has a quick ratio of 0.60, a current ratio of 1.43 and a debt-to-equity ratio of 0.30. The company’s 50 day moving average is $9.62 and its 200 day moving average is $5.15. The firm has a market capitalization of $665.41 million, a price-to-earnings ratio of -15.37 and a beta of 1.32.

Red Cat (NASDAQ:RCAT) last released its quarterly earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.09 by ($0.27). Red Cat had a negative net margin of 232.62% and a negative return on equity of 96.00%. During the same quarter last year, the company earned ($0.11) earnings per share. On average, equities research analysts anticipate that Red Cat Holdings, Inc. will post -0.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Joseph David Freedman sold 15,000 shares of Red Cat stock in a transaction on Monday, December 30th. The shares were sold at an average price of $14.24, for a total value of $213,600.00. Following the completion of the sale, the director now owns 585,190 shares of the company’s stock, valued at approximately $8,333,105.60. This trade represents a 2.50 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider George Michael Matus sold 112,686 shares of Red Cat stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the completion of the sale, the insider now directly owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. The trade was a 10.38 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,930,441 shares of company stock worth $21,099,751. 21.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Red Cat

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Regency Capital Management Inc. DE purchased a new position in Red Cat during the 4th quarter valued at about $130,000. Myecfo LLC purchased a new position in shares of Red Cat during the fourth quarter worth approximately $193,000. Kieckhefer Group LLC purchased a new position in shares of Red Cat during the fourth quarter worth approximately $296,000. Sanctuary Advisors LLC purchased a new position in shares of Red Cat in the third quarter worth $25,000. Finally, Wolverine Trading LLC purchased a new position in shares of Red Cat in the third quarter worth $233,000. 37.97% of the stock is currently owned by institutional investors.

About Red Cat

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.